Search
Close this search box.

Table of Contents

Chairman



Definition

In a financial context, a Chairman is the highest-ranking officer in a company or corporation’s board of directors. They are responsible for facilitating board meetings, establishing agendas, and coordinating the board’s function to strategically guide the business. The Chairman plays a key role in setting the direction and policy of the company.

Phonetic

The phonetic spelling of the word “Chairman” is /ˈtʃɛərmən/.

Key Takeaways

I believe there may be a misunderstanding here as your request leaves room for interpretation: the term “Chairman” could alluded to so many subjects. It could mean a Chairman of a Board, a company, or a specific person known as Chairman. However, without more clarification, I’m unable to provide a precise response. Please provide more specifics about the “Chairman” you want information on.

Importance

The term “Chairman” is significant in business and finance because it refers to the executive figure who presides over a board of directors, corporate meetings, or other business-related forums. The chairman often bears the responsibility of ensuring that the operations are well-regulated, conflicts are duly resolved, and the company’s strategies are thoroughly scrutinized and implemented. As a key leader, the chairman can play an influential role in shaping the organizational culture and driving the company’s overall performance. Hence, recognizing the role of the chairman aids in understanding the chain of command and decision-making process within a business setting.

Explanation

The Chairman serves a critical role in establishing the strategic direction and policies of any business or organization. Usually elected by the board of directors, the Chairman is considered a high-ranking executive who primarily oversees the company’s big picture strategies to meet its goals and objectives. The purpose is to offer leadership and direction to the board, to ensure that the board is effective in its task of governing the corporation, and to be a critical figure in the implementation of sustainable business practices and corporate governance. While the title “Chairman” encompasses a wide array of responsibilities, a common element across roles is orchestrating the board’s activities, such as organizing board meetings, setting agendas, and making sure these meetings run smoothly. The Chairman serves as a liaison between the company’s management and its shareholders, enabling clear communication lines and actively focusing on the organization’s performance. He or she can also have the casting vote in case of a tie during decision-making. Therefore, the role of a Chairman is essential for the proper functioning of the organization and the successful realization of its vision and goals.

Examples

1. Tim Cook, Chairman of Apple: Apple, the multinational technology company based in the U.S., appointed Tim Cook as its Chairman in 2021. He is responsible for the governance and strategic decisions of the company. He also works alongside other board members to ensure the company’s long-term success. 2. Robert Iger, Executive Chairman of Walt Disney: Robert Iger served as the Executive Chairman of Walt Disney Company from 2020 to 2021, providing strategic guidance to the company’s board and leadership team. Under his leadership, he played a key role in acquisitions that fortified Disney’s portfolio. 3. Sundar Pichai, Chairman of Alphabet Inc: Sundar Pichai, CEO of Google, also took the role of Chairman for Alphabet Inc., Google’s parent company, in December 2019. As Chairman, he plays a significant role in overseeing the operations and management decisions of all Alphabet’s subsidiaries, including those organized under Google.

Frequently Asked Questions(FAQ)

What is a Chairman?
A Chairman is the highest-ranking officer in a corporation or company. They preside over meetings, provide strategic leadership, and ensure proper governance.
What are the responsibilities of a Chairman?
A Chairman is responsible for leading the board of directors, maintaining good corporate governance, setting board agendas, and ensuring the company’s strategic objectives are met.
Is the Chairman always the CEO or Founder of a company?
No, the Chairman is not always the CEO or Founder of a company. These roles can be fulfilled by different individuals depending on the structure of the company.
Who appoints the Chairman?
The Chairman is generally appointed by the board of directors of a company.
Can a Chairman be removed from the position?
Yes, a Chairman can be removed from the position either by resignation or through a decision made by the company’s board of directors.
How do a Chairman and a CEO differ?
A Chairman oversees the board of directors and operations of the company. A CEO, on the other hand, manages day-to-day operations and makes significant corporate decisions.
What skills should a good Chairman possess?
A good Chairman should have leadership skills, business acumen, a clear understanding of the company and its market, strong communication skills, and the ability to make crucial decisions.
How does a Chairman contribute to the success of a business?
A Chairman contributes to the success of a business by leading the board of directors, setting strategic goals, maintaining good corporate governance, and ensuring that all board decisions are in the best interest of the company, its employees, and its shareholders.
Is the Chairman’s role more strategic or operational?
The Chairman’s role is more strategic, guiding the business’s vision, mission, and overall direction. They do not typically engage in daily operational tasks.

Related Finance Terms

Sources for More Information


About Our Editorial Process

At Due, we are dedicated to providing simple money and retirement advice that can make a big impact in your life. Our team closely follows market shifts and deeply understands how to build REAL wealth. All of our articles undergo thorough editing and review by financial experts, ensuring you get reliable and credible money advice.

We partner with leading publications, such as Nasdaq, The Globe and Mail, Entrepreneur, and more, to provide insights on retirement, current markets, and more.

We also host a financial glossary of over 7000 money/investing terms to help you learn more about how to take control of your finances.

View our editorial process

About Our Journalists

Our journalists are not just trusted, certified financial advisers. They are experienced and leading influencers in the financial realm, trusted by millions to provide advice about money. We handpick the best of the best, so you get advice from real experts. Our goal is to educate and inform, NOT to be a ‘stock-picker’ or ‘market-caller.’ 

Why listen to what we have to say?

While Due does not know how to predict the market in the short-term, our team of experts DOES know how you can make smart financial decisions to plan for retirement in the long-term.

View our expert review board

About Due

Due makes it easier to retire on your terms. We give you a realistic view on exactly where you’re at financially so when you retire you know how much money you’ll get each month. Get started today.

Due Fact-Checking Standards and Processes

To ensure we’re putting out the highest content standards, we sought out the help of certified financial experts and accredited individuals to verify our advice. We also rely on them for the most up to date information and data to make sure our in-depth research has the facts right, for today… Not yesterday. Our financial expert review board allows our readers to not only trust the information they are reading but to act on it as well. Most of our authors are CFP (Certified Financial Planners) or CRPC (Chartered Retirement Planning Counselor) certified and all have college degrees. Learn more about annuities, retirement advice and take the correct steps towards financial freedom and knowing exactly where you stand today. Learn everything about our top-notch financial expert reviews below… Learn More